11 Oct 2016

New LEAP Working Group Announced for Oregon Clean Fuels Program Credits

October 2016 — Leadership for Energy Automated Processing (“LEAP”) has established a new working group to create a master agreement for use in the Purchase and Sale of Credits under the Oregon Clean Fuels Program. This new working group has been formed under the North America Commodities Contracts Improvement Committee “NACCIC Committee.”

The LEAP Oregon Clean Fuels Program Agreement is largely based on the structure of the LEAP LCFS Master Agreement, which was published last year, since the Oregon and California programs are quite similar.

The NACCIC Committee was formed in 2015 as a continuation of LEAP’s efforts to develop standard contract template language or points of view that could be voluntarily incorporated by market participants into their bilateral trade documentation. In some cases, these documents will further enhance LEAP’s existing trade templates such as the LEAP “Version 3” Master Agreement suite, the LEAP RINs documentation, the LEAP LCFS Master Agreement, and other changes as required by changes in law or market practice.

The NACCIC Committee thus far has focused on the following subjects:

  • NYH Ethanol Barge/Vessel Supplement: The creation of the LEAP New York Harbor Ethanol Barge/Vessel Supplement agreement, which is intended to be used by parties to clarify the obligations of a buyer and seller of waterborne ethanol in the key New York Harbor terminal area, with particular focus on nomination procedures, volumetric tolerances, the transfer of RINs, and the calculation of demurrage responsibility for the buyer and seller of the ethanol.
  • QAP Changes to RINs Agreements: The incorporation of certain edits to the LEAP RINs Master Agreement and LEAP RINs Single Trade Agreement to recognize the EPA’s QAP program for Renewable Identification Numbers (“RINS”).
  • Changes to the LCFS Master Agreement: The incorporation of certain edits to the LEAP LCFS Master Agreement to proactively address the proposed changes by the California Air Resources regarding the timeframes for Initiating and Accepting LCFS Credits by directly referring to the regulations for the timeframes of those activities.

The NACCIC Committee is comprised of representatives of certain LEAP member companies. All LEAP members are welcome to join the Committee. For more information about LEAP Membership or about our Limited Participation option, either visit our Membership Page or else contact us at info@energyleap.org.

LEAP’s mission is to promote efficient and reliable transaction processing within the energy trading industry. Membership in LEAP is open to energy trading, service and association entities on a nondiscriminatory basis. All members must be legal entities, not natural persons.